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Should the US Ban Chinese EVs? (arstechnica.com) 283

An anonymous reader quotes a report from Ars Technica: Influential US Senator Sherrod Brown (D-Ohio) has called on U.S. President Joe Biden to ban electric vehicles from Chinese brands. Brown calls Chinese EVs "an existential threat" to the U.S. automotive industry and says that allowing imports of cheap EVs from Chinese brands "is inconsistent with a pro-worker industrial policy." Brown's letter to the president (PDF) is the most recent to sound alarms about the threat of heavily subsidized Chinese EVs moving into established markets. Brands like BYD and MG have been on sale in the European Union for some years now, and last October, the EU launched an anti-subsidy investigation into whether the Chinese government is giving Chinese brands an unfair advantage.

The EU probe won't wrap until November, but another report published this week found that government subsidies for green technology companies are prevalent in China. BYD, which now sells more EVs than Tesla, has benefited from almost $4 billion (3.7 billion euro) in direct help from the Chinese government in 2022, according to a study by the Kiel Institute. Last month, the EU even started paying extra attention to imports of Chinese EVs, issuing a threat of retroactive tariffs that could start being imposed this summer. Chinese EV imports to the EU have increased by 14 percent since the start of its investigation, but they have yet to really begin in the U.S., where there are a few barriers in their way. Chinese batteries make an EV ineligible for the IRS's clean vehicle tax credit, for one thing. And Chinese-made vehicles (like the Lincoln Nautilus, Buick Envision, and Polestar 2) are already subject to a 27.5 percent import tax.

But Chinese EVs are on sale in Mexico already, and that has American automakers worried. Last year, Ford CEO Jim Farley said he saw Chinese automakers "as the main competitors, not GM or Toyota." And in January, Tesla CEO Elon Musk said he believed that "if there are no trade barriers established, they will pretty much demolish most other car companies in the world." [...] It's not just the potential damage to the U.S. auto industry that has prompted this letter. Brown wrote that he is concerned about the risk of China having access to data collected by connected cars, "whether it be information about traffic patterns, critical infrastructure, or the lives of Americans," pointing out that "China does not allow American-made electric vehicles near their official buildings." At the end of February, the Commerce Department also warned of the security risk from Chinese-connected cars and revealed it has launched an investigation into the matter.
"When the goal is to dominate a sector, tariffs are insufficient to stop their attack on American manufacturing," Brown wrote. "Instead, the Administration should act now to ban Chinese EVs before they destroy the potential for the U.S. EV market. For this reason, no solution should be left off the table, including the use of Section 421 (China Safeguard) of the Trade Act of 1974, or some other authority."
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Should the US Ban Chinese EVs?

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  • Of course (Score:5, Insightful)

    by christoban ( 3028573 ) on Saturday April 13, 2024 @08:06AM (#64391282)

    Should we let them steal all our intellectual property, then sabotage most of our brands in their media, then destroy all our domestic car makers? What kind of shill would sit by and take yet another poker in the rear?

    • Re:Of course (Score:4, Insightful)

      by gweihir ( 88907 ) on Saturday April 13, 2024 @09:08AM (#64391386)

      Why would they do that? They already have phones out there. Incidentally, the US domestic car makers are destroying themselves. The Chinese are just seizing the opportunity as good capitalists do.

      • Re:Of course (Score:5, Insightful)

        by saloomy ( 2817221 ) on Saturday April 13, 2024 @09:27AM (#64391424)
        "Should we fuck over 330 million Americans by making their cars more expensive by limiting competition, so we can get the votes of about 400,000 US auto workers?" - FTFY
        • Re:Of course (Score:5, Insightful)

          by gweihir ( 88907 ) on Saturday April 13, 2024 @07:55PM (#64392526)

          This works because in the US, fake "patriotism" makes people switch off their brains and cheer mindlessly. Of course, doing things like that does a lot of long-term damage. It is no accident that the effective standard of living in the US is among the lowest in the developed world. Things like not being able to afford medical care (or medical bankruptcy) or education (or massive student loan debt) are essentially unheard of in most of the developed world, not so in the US. This is no accident and is (among other things) a result of the "patriotism" button being far too easy to press for politicians. Hence they use it whenever possible.

          Democracy only works when people are very suspicious of their "leaders" and pay close attention to what they do and kick them in the nuts whenever they do not deliver on their promises. No, voting "Trump" is exactly the opposite. It is falling for the guy that lies even more.

      • by Rob Y. ( 110975 )

        ... as good capitalists do

        Yeah, by treating their workers to subsistence wages, and their environment to utter despoliation. The WTO (or whoever) needs to establish global standards for minimum wages and environmental practices before its members agree to open their markets to products from another nation. American workers might not like competing with minimum wage foreign workers, but at least they wouldn't be competing with essentially zero wage workers. Something like that was done with regard to Mexi

    • Re: (Score:2, Interesting)

      To fix global warming, we need affordable EVs.

      American manufacturers don't make those. China does.

      So what's more important, fixing the climate or protecting manufacturers from competition?

    • Re:Of course (Score:5, Insightful)

      by ArchieBunker ( 132337 ) on Saturday April 13, 2024 @09:35AM (#64391448)

      So now you want a regulated market.

    • Trump’s Chinese anti-dumping tax will do the trick.
  • state security (Score:5, Insightful)

    by Lehk228 ( 705449 ) on Saturday April 13, 2024 @08:09AM (#64391288) Journal
    as a mattor state security, yes. there is far too much capacity for sabotage and espionage allowing a hostile nation to put millions of vehicles on our roads.
    • Re:state security (Score:5, Insightful)

      by Baron_Yam ( 643147 ) on Saturday April 13, 2024 @08:28AM (#64391324)

      Then ban EVs that have routable communications systems; let them have TPS and wired DRB-II and Bluetooth. Mandate that software updates be certified by an American company prior to deployment, and that they require a trip to a dealership for the update.

      I mean... those would be selling features to me, but they also alleviate concerns about a foreign nation having control of your transportation infrastructure.

      • by jvkjvk ( 102057 )

        Nope.

        Full tear downs of the vehicles would be required, on a regular basis, to ensure that bad things aren't being inserted. That includes any and all chips that are in the vehicle.

        It's just a massive vulnerability hole. Makes me think of that Dr. Who episode where the bad guy had control of the cars.

  • by zephvark ( 1812804 ) on Saturday April 13, 2024 @08:15AM (#64391298)

    Y'know, last time the American car makers got wiped out because they insisted on trying to sell big, badly-made cars to people who wanted more efficient cars that didn't fall apart all the time.

    These guys have had plenty of time to get a grasp on the EV market, and now they're whining that they can't compete without government intervention. Again. Well, let 'em fail if they're such losers. If the government bails them out, we're not doing any better than China.

    We should be rooting for EVs any way we can get them. It might help save the planet! But no, you want to squabble about WHO gets to save the planet? What are you, Republicans?

    • by e3m4n ( 947977 )
      Worse, the United Auto Workers union.
      • If consumer reports can be considered an authority on the subject, the UAW exclusively makes worst cars you can buy in the US. Compare their reliability ratings with the models that the UAW themselves claim to make, and you'll see what I mean. In that same brochure, they claim to make quality cars, so you also know they believe in false advertising too.

    • Y'know, last time the American car makers got wiped out because they insisted on trying to sell big, badly-made cars to people who wanted more efficient cars that didn't fall apart all the time.

      These guys have had plenty of time to get a grasp on the EV market, and now they're whining that they can't compete without government intervention.

      People want trucks and SUVs. This time around government is forcing the manufacturers to build things people don't want. Not surprising that is not going to be as profitable for all but a few makers.

  • by sound+vision ( 884283 ) on Saturday April 13, 2024 @08:18AM (#64391302) Journal

    It sounds like much a repeat of the situation in the auto industry in the 70s. US automakers fixated on one class of vehicle to the exclusion of everything else, then the market shifts away from that and they're caught with their pants down. Asian manufacturers step in products ready to fill the gaps.

    I would be OK with an import ban if the US manufacturers offered comparable vehicles at comparable prices.

    • by shilly ( 142940 )

      And they did it to themselves, too. US automakers didn't need to shape US consumer preferences in favour of vehicles that are on average much bigger than the rest of the world (especially trucks, which basically exist nowhere else). They could have pursued a global strategy and sought to focus 90% of their efforts on vehicles that would be popular across many markets. But instead, they turned the US market into a huge profitable niche where consumers behaved completely differently from Europe or Asia, and n

      • Both of the following are true simultaneously, if you listen to the protectionists:

        1. American carmakers do not make small efficient cars, particularly EV's, because Americans do not want to buy them
        2. We cannot allow anyone to import small efficient cars because Americans will buy them instead of American cars

        • by shilly ( 142940 )

          Ha! Yup

        • I think the issue is the scale of the cost difference. The BYD seagull I think is 10 grand. Literally less than golf carts in the US I've seen at costco. While I don't want a seagull type car, it is pretty stripped, for 10 grand I might be convinced. And the US makers cannot make a seagull for 10 grand. So they do exactly what you say. They do not produce small cars, the margins are awful to negative. They produce trucks/SUV's, the margins are good to fantastic. It really boils down to capitalism. China is
      • by StormReaver ( 59959 ) on Saturday April 13, 2024 @09:39AM (#64391452)

        US automakers didn't need to shape US consumer preferences in favour of vehicles that are on average much bigger than the rest of the world (especially trucks, which basically exist nowhere else).

        U.S. automakers favored larger vehicles because the U.S. Government required mileage and emissions targets for smaller cars to be met or the automakers would face significant fines. Certain trucks were exempt from the fines, and it was straightforward for automakers to meet the definition of what constitutes such a truck by making smaller cars bigger. No one likes paying fines, so the SUV was born.

        • by sinij ( 911942 )
          This is exactly why small trucks up until recently were non-existent. Auto manufacturers had easier time meeting emissions on larger trucks, so they stop making small ones.
        • SUV-style vehicles were around before emissions regulations. Jeep Wagoneer and Dodge Power Wagon going back to the 1950s, and probably some others I'm forgetting. The question is what changed to prompt people to start buying them in numbers.

          • SUV-style vehicles were around before emissions regulations. Jeep Wagoneer and Dodge Power Wagon going back to the 1950s, and probably some others I'm forgetting. The question is what changed to prompt people to start buying them in numbers.

            They made them comfortable and luxurious. A taller version of the big cars North Americans have always liked.

        • by shilly ( 142940 )

          Yeah, I know the history of it. It's bitten them on the ass now

    • by e3m4n ( 947977 )
      I would be happy to see a shift away from oversized SUV and 2ton pickup trucks. Anything bigger than a toyota highlander is totally excessive. The weight to space ratio crashes making them terribly inefficient. Yet people keep buying them. Read an article about some idiot woman on tiktok who bought two $80k vehicles in the last couple years and is whining about a $1400 and $1600 a month car payments and how its more than her rent. Duh! Maybe dont spend $80k on a damn SUV or Truck!!
    • "I would be OK with an import ban if the US manufacturers offered comparable vehicles at comparable prices."

      For US manufacturers to match Chinese prices we would need to repeal the 13th Amendment, then abolish OSHA and the EPA. The minimum wage also needs to be canceled, as does the rest of the Fair Labor Standards Act. It would also help to repeal the Endangered Species Act so we can get domestic mining going again and reduce the cost of the materials needed to build the cars.

      All those rules and regulation

      • by Anonymous Coward on Saturday April 13, 2024 @09:04AM (#64391380)

        The reason why PV panels went from negligible to 95% is because China invested into it more so than anyone else, seeing it as the future, while other countries namely the US stuck their thumb in their ass, trying to invest in nat. gas infrastructure and frack drilling, probably mainly due to lobbying than anything else, while stating climate change is fake news.

        And if the US keeps going this way, China is pretty much going to be the premier market and supplier of EVs in the world, because no one in the US is going to want to buy overpriced EVs, that cost more than a gas guzzler. China sees EVs as the future, and is willing to destroy whatever ICE auto factories there are in China and make it cheap enough for the common Chinese citizen. They did the same thing with PVs, seeing it as the future, and don't want to necessarily be dependent on nat. gas, especially since it has to be imported, and mass producing it enough to become a viable source of energy in China, where the large majority of PV installations annually in the world is in China. They did the same with steel and cement, where 90% of the steel and cement that was being produced was being used in China to build up infrastructure. No one else in the world could supply what China needed so it build up those industries.

      • I would even pay higher prices for a US product. Say double the cost of what they're charging domestically for Chinese EVs. The problem is there is no US product, at any cost, and that is by choice not by law.

        If there aren't any EVs available below $30k within the next few years, I might skip "the industry" entirely and get an electrified classic from a small shop. I gather it'd be roughly the same price and it would match my needs even better than the Chinese cars.

        • If I had enough money for a new EV right now I'd find some 240Z that could be restored without too much trouble (as in most of the sheet metal is still there) and have the unibody treated so it has a chance to last a while, and do a custom EV conversion. That was a sweet little car, and it weighed approximately nothing. With a dogbone battery filling the driveline tunnel and the bottom of the engine bay, you could make a really sweet little ride with good range.

          Instead, I drive a disposable Versa. The milea

          • If I had enough money for a new EV right now...oh wait, I do. But I like my gas car just fine. Will probably buy another one soon.
        • Bolt and Leaf both start under 30. I think before the 7500 if they are eligible. In a few years in today's dollars, I expect there will be a few under 30. Of course in a few years, that 30 may be 35, so factor in inflation into your price range.
      • For US manufacturers to match Chinese prices we would need to repeal the 13th Amendment, then abolish OSHA and the EPA. The minimum wage also needs to be canceled, as does the rest of the Fair Labor Standards Act.

        No you wouldn't. There's a reason why Chinese cars in the USA sell for significantly higher price than other countries. The differences in cost savings due to regulations are a matter for import tariffs to level the playing field, and Chinese cars already have close to 30% tariffs applied to them.

        Now we could happily argue if 30% is enough, but claiming that you need to abolish local regulations is just ignorant of how international trade works.

    • I'd say it's Japan that missed the boat this cycle. China, Germany, and U.S. are the countries producing the EVs.

      • by ghoul ( 157158 )
        Dont forget India. Tata has had a $16K small EV SUV on the market for 5 years now and the demand is so high there is a 2 year waiting list.
  • It does look good to those with no knowledge of economics though.

    • Some things are pure protectionism, some can be about levelling playing fields, consumer standards or prevention of dumping below cost. It can be complex and even with the right intentions a government can get it wrong. And sometimes protectionism masquerades as consumer standards regulations or there can be a mix of valid consumer standards requirements and protectionism in a single regulation, sometimes because otherwise competing interests need something they want in a bill before it can be passed.
  • Well US s scared shitless for anything else China manufactured so why not? Surprised IPhone had not been banned yet.
    • Not really. The U.S. is concerned about critical pieces of the value added supply chain. These are the elements that keep the global markets moving (like chips) or produce up skilled labor domestically (like EVs) or where there is a pressing national security concern (like networking equipment). Other than that, we are cool with Chinese made textiles, clothing, electronics, consumer goods, etc.

  • As I doubt they would be allowed to sell any cars in China, and prob a few other countries after that
  • Sucks to suck America. No thanks on the ban, I still need to get places and I don't want/can't afford a 70k pickup truck. Maybe instead of building bad products no one wants try harder?
  • by sphealey ( 2855 ) on Saturday April 13, 2024 @09:12AM (#64391394)

    So far the EV autos designed in the PRC have not attempted to meet US/Canada safety and regulatory certification standards. BYD has an engineering and manufacturing center in the US for their EV municipal vehicles so they could certify a car if they thought they had a market for it, but so far that doesn't seem to be the case. Perhaps the US EV makers could concentrate on making their products more price competitive and improving sales and service so they don't have to resort to a trade war to win the market?

    • by thegarbz ( 1787294 ) on Saturday April 13, 2024 @09:54AM (#64391482)

      So far the EV autos designed in the PRC have not attempted to meet US/Canada safety and regulatory certification standards.

      BYD already have many consumer vehicles that meet safety standards in Europe and Australia which are far more stringent than the very backwards (by western standards) US safety regulations.

      BYD has an engineering and manufacturing center in the US for their EV municipal vehicles so they could certify a car if they thought they had a market for it

      Your issue is you are clueless as to their current state. BYD *has* certified a consumer car and is selling one. The BYD Han. Recently BYD was asked why they are only releasing one EV model in America instead of the 6 in Europe (the Han is also sold in Europe) and their answer was that USA regulations for EVs are constantly changing shitshow and it's hard to plan a long term market investment when you can't even figure out if what a politician says today won't change tomorrow.

      There's nothing unsafe about BYD, and they sure as heck don't have a problem with capability, which is why the BYD engineering and manufacturing centre in the USA focuses on commercial vehicles, where they aren't competing with political lobbyists.

  • by Pinky's Brain ( 1158667 ) on Saturday April 13, 2024 @09:43AM (#64391456)

    MG/BYD isn't really at some different level to European manufacturing here in Europe AFAICS.

    Also it's the European manufacturers which are breaking open the quintessential European small car market. Dacia Spring Extreme was the first somewhat practical one even if underspecced, now there's Citroen e-C3, soon Fiat Panda-EV and at some point VW will join late to the party. Chinese are nowhere to be seen.

    • I hate to rain on your parade, but Dacia Spring is fully built in China.
      Other Dacia models are built in Romania, Tunis (I think) and a few other places (even in Russia not so long ago, if I remember correctly).
      But Dacia Spring was built completely in China at the launch, and I do not think this has changed.

    • by AmiMoJo ( 196126 )

      MG and BYD are offering the same quality as European and Japanese manufacturers, but at a fraction of the price. The Koreans used to be similar but their cars are getting expensive now.

      In the EV realm the Chinese have the best batteries and some pretty competitive drivetrains. They also have some unique features, like Nio with their battery swapping.

  • US and EU automakers still seem to be treating EVs as tech toys for wealthy people, and I donâ(TM)t want over $60,000 for an electric SUV or pickup truck! If we really want widespread EV adoption by 2035, we need to fill the car market with affordable models that still have decent range. Ford and GM arenâ(TM)t going to do it willingly until they start losing marketshare from the likes of BYD.

  • Or perhaps we could come up with some kind of flammability/runaway standard that would disqualify them without naming them, so that it didn't have to be adjusted for each new chemistry.

    NCM batteries' electrolyte releases oxygen when heated, which is why they are so dangerous. Well, that and the cobalt, which doesn't increase fire risk AFAIK, but you really don't want to be breathing it.

    But ban Chinese-produced EVs? No. What we should do is place a slave labor tariff on all goods produced by workers making l

  • EVs are little more than cell phones on wheels. The CCP will use that tracking to their advantage and disrupt any country that purchases them. Even if EVs can be unpaired from their manufacturer (this means all companies, not just Chinese) you still can't trust them. Hell, this goes for new ICE vehicles as well. The raping of personal data has consequences, especially when it involves shit-heads like the CCP.

  • You can't just come right out and ask for protectionism. You gotta come up with an excuse. For example, clove cigarettes were banned not because they were imports eating into domestic brands, but because flavored cigarettes are marketed to children.

  • by MpVpRb ( 1423381 ) on Saturday April 13, 2024 @10:43AM (#64391560)

    ...enormous economic difficulty
    We abandoned manufacturing and outsourced most of it to China
    If we escalate the trade war, they will respond, eventually stopping ALL exports
    It will be a major disruption as we scramble to find other sources
    This is especially true in tech. Chinese people are smart. What happens if they become the tech leader, and refuse to sell us the latest and best stuff?
    We did this to ourselves in search of higher profits

  • In the past when looking into BYD sales numbers I always have had difficulty separating out the BEV sales numbers from their Plugin-Hybrids, Hybrids, and for that matter all the other vehicle that uses batteries for propulsion energy. BYD makes a lot of different models of vehicles. Maybe they have golf carts and e-bikes in their numbers. I have given up looking, so I'm hoping someone else has done the work.

    With Tesla it is easy. They don't sell anything but BEVs so there is no post-processing work t

  • by Spy Handler ( 822350 ) on Saturday April 13, 2024 @11:16AM (#64391650) Homepage Journal
    That was US government mantra drilled into the heads of the citizens of USA (including you and me) for decades and decades. China is evil and Russia is evil because they're evil communists.

    Now that China has completely embraced capitalism and market economy and become so good at it that it's burying US corporations, China is once again evil.

    It ain't all about cheap labor. Labor costs in China now are far higher than places where US corporations have a strong manufacturing presence such as India and Vietnam. The #1 driver of Chinese manufacturing domination is that they've become very, very efficient. It's the same story we've seen before, with the likes of Toyota in Japan when they were far behind USA in the 1950's, but kept learning and improving until they surpassed the stagnant US companies.

    In the last 20 years USA has spent 12 trillion dollars dropping bombs on villages in the Middle East that benefited no one except the military-industrial complex and some senators in the payroll of Blackrock. Meanwhile in the same 20 years China has spent exactly zero dollars waging foreign wars. Instead they spent trillions on improving their infrastructure (see all those new roads and bridges?) and automating their factories with robots. In fact the amount of industrial robots China bought in the past 4 years since COVID is astounding.... it's higher than all of USA Cananda and EU combined. *THIS* is the biggest driver of how China manufacturing has become so efficient.
    • The US basically ceded their own industrial base which is what won them WW2 and Cold War for the benefit of MIC. Also, politics. Lots of pork. Pork for everyone. It's basically history repeating itself, all major imperial powers go through this cycle and then they vanish. Only issue is US has nukes and won't go quietly into the night or will they?
  • The thing you have to realize us that Chinese industry and the Chinese government are intertwined. This isn't a matter of a foreign company making a better product for less. This is a governmental effort to break into a new industry - with subsidies, and political support.

    Look at chips, and the effort to regain manufacturing capabilities in the US. Primarily by funding foreign companies, because US industry us no longer competitive. That's what China wants to achieve with EVs.

  • If we don't make them, somehow. Freezing the Chinese out of the equation lessens pressure on them to change. Not that the Chinese don't *deserve* to be blocked out - they do - due to their numerous human rights, IP, and other legal violations.

    However, the American car manufacturers will sit on their fat lazy asses and make profits, not better, cheaper cars if the Chinese cars are tariffed. Unless part of that bill is a tasking and penalty schedule for American manufacturers to match Chinese progress and pri

  • What would happen if fall the Chinese EV's currently in the country at that point spontaneously burst into flames through their car receiving a signal that actuated an unused microchip path in some obscure code to turn on test mode and overclock the battery or something? Or 1 in 100 cars?

    What level of testing do you have to do to ensure that what you are importing that is of National Strategic Importance, sheerly due to the ubiquity and closeness to nearly every American citizen, is safe? Especially when i

  • First thought: This is coming from a US Senator. You are the one who makes the laws, dude. Write one up. Get it passed. Make it a law. Don't badger the President to use questionable executive power to do your bidding. DO YOUR JOB. MAKE A LAW.

    Second thought: No. Don't ban Chinese EVs. It is the wrong way to handle this. If there is an unfair subsidy, apply tariffs to equalize the situation. Banning foreign competition removes market pressure to improve domestic products.

  • Just like they require in China. Pretty sure many/most US companies only operate inside mainland China this way (which allows stealing of ideas and technologies). Fair is fair.
  • As they impose on our stuff. And, if the chinese government is subsidizing such exports, we should have a little chat with them about it.
  • The USA has already used tax-payer subsidised exports to destroy local markets in other countries, e.g. https://www.bbc.com/news/world... [bbc.com] It's a great way to create dependencies, twist arms, etc.. It'd seem that the USA's in a full-blown trade war with it's main manufacturers' country. This should be interesting.
  • Because China and the USA are both members of the WTO. Thanks, Bill Clinton.

If all the world's economists were laid end to end, we wouldn't reach a conclusion. -- William Baumol

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